About Managed Companies
Our Objective
Our objective is to structure and manage superior
investment products that provide exceptional return
opportunities to investors. The Scotia Managed Companies
provide investors with a range of different investment
products. Some of these provide low cost diversification,
while others provide leveraged participation in individual
companies or portfolios of companies. We have the
most experience and dedicated resources in this investment
area, and offer truly superior products. We currently
manage in excess of $2.0 billion in assets.
Management
Each Scotia Managed
Company and Trust has a board of directors that represents
shareholders/unitholders and monitors the performance
of the companies/trusts. Scotia Capital Inc. provides
all of the ongoing administration for the companies
and trusts.
To buy and sell shares/units
of these companies/trusts, you need to place orders
through an intermediary, such as a broker, who will
convey your instructions to the stock exchanges, and
keep you informed of the status of your orders. In
exchange, brokers charge a fee or commission, usually
a percentage of the transaction (the number of shares/units
or the total money involved, subject to a minimum
fee).
Marketing
Each Scotia Managed Company is publicly listed and
has been designed to provide a specific investment
opportunity. The companies are marketed through brokers
and are formally launched through an initial public
offering (IPO). Funds from the IPO are used to invest
in the underlying securities. A fixed number of shares/units
are issued and traded on the Toronto Stock Exchange.
One of the structures that Scotia
Managed Companies distributes are Split Shares. Split
Shares "split" the investment returns on a portfolio
of stocks into a lower risk dividend stream and a
leveraged play on the price of the portfolio. Capital
appreciation on the underlying portfolio is for the
benefit of the capital shares, while the dividends
received from the underlying portfolio, are paid to
the holders of the preferred shares. Split Shares
are either based on individual shares, such as B Split
II (BCE Inc.), R Split (Royal Bank), and Scotia Split
(Bank of Nova Scotia), or on portfolios of common
stocks such as Allbanc (Canadian Banks), Lifeco (Canadian
Life Insurance Companies), Sixty Split (S&P/TSX
60 Index Companies) and SNP Split (S&P 100
Index Companies). Capital Shares provide a leveraged
return based on the performance of the underlying
portfolio, are RRSP, RRIF and DPSP eligible and provide
leverage without the risk of margin calls, or variable
borrowing costs.
Scotia Capital Inc.
The Trusts and Corporations,
created and administered by Scotia Managed Companies,
are produced by a team consisting of investment banking
professionals, capital markets experts and Scotia
Capital investment executives. Brian McChesney, Managing
Director of Investment Banking for Scotia Capital
Inc., has primary responsibility for the area.
Brian has over 17 years
experience structuring financing for corporations
in a variety of industries such as financial services,
technology, mining and consumer products. Brian has
an Engineering degree from the University of Toronto
and MBA from the University of Chicago.
All of the Scotia Managed
Companies are assembled using cross functional teams
that address the capital markets, trading, research
and brokerage aspects of the product. The resulting
companies are screened through a combination of the
practical judgment of our teams and advanced quantitative
research techniques. We hope the excellent record
of these funds will continue as we introduce new companies
every year. We look forward to bringing you further
gains from your investments in Scotia Managed Companies.
